Few would argue that we are living in remarkable times in real estate.
We’ve seen continually rising prices and huge demand for homes. This area even has its own separate set of dynamics due to prosperity in the tech sector.
It would be difficult to conceive of a better overall situation than the one we’ve been witnessing here for some time.
Any yet there are still sellers out there playing a waiting game, convinced that there are even better times ahead.
This is a high risk strategy, to say the least.
It is, of course, understandable that sellers want to maximize the return on their sale, so there will always be the temptation that, by waiting another few months or even longer, far better profits can be made.
If only life was as certain as that. A good example of how unpredictable things can be is the story of mortgage rates so far in 2016.
As last year drew to a close, widespread expert predictions anticipated a steady rise in rates during this year. What those forecasts didn’t foresee, however, was the collapse in Chinese stocks almost as soon as markets opened in the New Year.
This unexpected crisis has subsequently had massive repercussions across global markets, with the result that safe-haven investments, such as mortgage-backed securities, have again been far more appealing to risk averse investors. This has helped to keep mortgage rates here near to historic lows – totally unexpected and a great demonstration of the uncertain times we live in.
We’ve seen something of a recovery in US stocks during this month, but continuing international anxieties of one kind or another continue to feed into an overall lack of investor enthusiasm. All that being said, there are still no guarantees that other pressures will weigh on low rates and that we will still see a gradual rise at some point in the year – something that will, temporarily at least, almost certainly dilute buyer sentiment to some extent.
It should also be remembered that we are in an election year and that also brings about uncertainties about future financial policies and the effect they may have on real estate. Another great argument against seller, and indeed buyer, procrastination.
As I have previously advised my blog readers, there is so much merit in dealing in the “now”, and the now doesn’t really get to look any better than it does at present.
Buyers continue to be highly motivated by the simple fact that they can currently lock in exceptionally low mortgage rates. That explains the very lively winter we’ve just been through, somewhat bucking the trend of a usually quiet time for home purchase.
I think I can best sum things up by saying that right now there are far more risks in waiting than taking action.
Why not call us today for the most informed advice of how to take advantage of the amazing current market conditions.